This paper considers a two-stage quantity-setting duopoly model. The paper classifies demand functions into the following four cases in terms of the goods relevance and strategic relevance between both firms: ‘substitute goods and strategic substitutes’, ‘substitute goods and strategic...

While little attention has been paid to the role of profitability in the empirical literature on firm exit, we employ a detailed recently established database of Norwegian manufacturing firms to identify the extent to which profitability explains a firm's exit behavior. Some key characteristics...

We study communication in a static Cournot duopoly model under the assumption that the firms have unverifiable private information about their costs. We show that cheap talk between the firms cannot transmit any information. However, if the firms can communicate through a third party,...

This paper considers a two-production-period model in which a state-owned firm competes against a labour-managed firm. In the first production period, the state-owned and labour-managed firms simultaneously and independently choose outputs. The chosen outputs become common knowledge and then, in...

This paper considers mixed Cournot duopoly competition with two production periods in which labour-managed and profit-maximizing firms compete against each other. The paper demonstrates that there exists a subgame perfect Nash equilibrium that coincides with the Stackelberg outcome in which the...

Transparency in teams can facilitate cooperation. We study contribution decisions by agents when previous decisions can be observed. We find that an information chain, in which each agent directly observes only the decision of her immediate predecessor, is at least as effective as a...

This paper studies firms' incentives to commit to transparent behavior in a competitive procedure modeled as an asymmetric information beauty contest managed by a corrupt agent. In his evaluation of firms' offers for a public contract the agent has some discretion to favor a firm in exchange for...

In a quantity-competition oligopoly, previous studies have shown that a price-taking firm can outperform any rival with identical technology that produces at a different output level at any intertemporal equilibrium. This research seeks to examine this seemingly counter-intuitive fact in a...

Este artículo modela los posibles efectos que sobre el precio de un mercado de un bien homogéneo se puede producir ante una integración empresarial. El análisis se realizará a partir de dos escenarios, (i) considerando tecnologías similares entre firmas y (ii) con algún grado de...